Assignment:
The manager of a movie theater would like to predict the consequences of adding a second ticket clerk. Data show that arrivals to the theater are Poisson distributed at a rate of 250 per hour, and service times are exponentially distributed with a mean of 12 s. The manager has also estimated that losses in concession revenue when customers wait in the ticket line are $1.50 per waiting hour. This revenue is not recovered once the customers enter the theater. Given that it costs $5 per hour to have a ticket clerk, should the manager add a second server?
Provide complete and step by step solution for the question and show calculations and use formulas.